The present invention relates to financial transaction cards, and more particularly, to a system and method for transferring value on a transaction card from an advanced technology memory on the card to a magnetic stripe memory on the card.
It has been suggested that the extensive use of transaction cards having magnetic stripe memories, such as credit, debit and stored value cards, is inhibiting the growth of more advanced and powerful cards. With the latest technological advances transaction cards having integrated circuit memories, called smart cards, optical memories and thin film semi-conductor memories give consumers superior functionality and security. Yet, the large installed base of devices that only interact with magnetic stripe cards provides a huge obstacle to the commercial success of the lees technology transaction cards. Thus, a system is desired for providing a single transaction card that can interact with the installed base of devices dedicated to magnetic stripe cards, and also provide the advanced functionality and security of the latest technology memories.
Although the use of magnetic stripe cards is common, their utility is confined by their relatively limited memory capability. The magnetic stripe on a typical card comprises 3 tracks where data can be stored and accessed. The standards for determining location and types of data to be stored on the tracks are identified in standards issued by the International Standards Organization (ISO). Generally, certain industry information must be maintained on certain portions of the tracks, while other portions of the tracks may have open data fields. Standard information, such as the cardholder""s name and account number, and the issuing banks routing number, must be stored on the tracks.
For example, when a magnetic stripe card is swiped in an Automated Teller Machine (ATM) transaction, the on-line ATM reads the account number information on the card and prompts the user to verify their identity by entering a Personal Identification Number (PIN). Also, the ATM prompts the user to identify the transaction, such as to make a checking withdrawal. Typically, the ATM then accesses the appropriate account in the on-line system and insures that the entered PIN matches the account PIN that is stored on-line. Further, the account balance is checked to insure that the transaction is not in excess of the account balance. When the PIN""s match and the account balance is sufficient, the ATM allows a transaction to proceed and the on-line account information is adjusted accordingly. This is just one example of how an ATM transaction may proceed, but other steps or a variation of the above steps may occur. Thus, the use of a transaction card in an ATM allows access to an on-line account that may be utilized to access funds to be dispensed by the ATM as cash.
After the magnetic stripe card is initialized with the customer""s name and account number, typically no further data is recorded onto the magnetic stripe on the card. The information contained in the stripe is just read for identification purposes so that the on-line system can be accessed. Thus, magnetic stripe cards are limited to being used to access accounts available only through on-line systems.
In contrast, cards having advanced technology memories are highly functional and the data may be read from and written to the memories. Suitable advanced technology memories include integrated circuit (IC) memories, also know as smart cards. Smart cards are similar to magnetic stripe cards in size and appearance, but instead of having a magnetic stripe along the back side, they have a microcomputer chip embedded within the card. Current technology integrated circuit chips give smart cards the ability to store about 16 kilobytes of E-squared memory. Because the advanced technology memories have computer functionality, they have the ability to store and run programs that can manipulate data. One advantageous feature of advanced technology memories such as smart cards is their ability to provide encryption technology that may be used to encode data to insure the security of the data. Thus, the advanced technology memories provide functional and security advantages not present in a magnetic stripe memory.
As mentioned above, however, many consumers may not be able to take advantage of the advanced technology memories because the businesses in their area may not provide devices capable of reading and writing to the advanced technology memories on transaction cards. In this situation, a consumer may be reluctant to obtain a transaction card with advanced functionality and security because they have limited usage in their area. Although local businesses may not provide devices for using cards with advanced technology memories, however, a consumer may still desire to obtain such a card for their own personal use, such as on a networked computer. For example, a consumer may use a transaction card with a smart card memory in conjunction with a smart card reader/writer and a personal computer or personal digital assistant in communication with a merchant on the Internet. The smart card allows the consumer to make a secure electronic transaction over the Internet. Similarly, the consumer may utilize such a set-up to communicate with their bank and transfer money into an electronic purse application within the smart card. Thus, even though advanced technology card usage is not accepted by local businesses, consumers may desire to utilize advanced technology cards for other reasons.
Further, with the internationalization of business, many communities in remote parts of the world are exposed to current financial devices, like credit cards, debit cards, and smart cards, but they may not be able to take advantage of them because they do not have the infrastructure to immediately support every new advance in technology. Despite this difficulty, it is desirable to bring these areas up to speed so that outside business can effectively deal with these communities. Further, the consumers in these communities desire to conduct transactions utilizing the latest devices. Thus, a single card with advanced technology memory that can interact with current systems is desired.
Therefore, a solution to these problems is desired to allow consumers to utilize a transaction card having advanced technology memories and be able to utilize the functional and security features of the advanced technology memories within the current installed base of devices that only read the card""s magnetic stripe.
The present invention deals with leveraging the use of transaction cards having advanced technology memory capabilities, such as integrated circuit (IC) or chip memory, i.e. xe2x80x9csmart cards,xe2x80x9d optical stripe memory and thin film semi-conductor memory, within the established network that exclusively services magnetic stripe cards. The network includes automated teller machines (ATM""s), customer access terminals (CAT""s), the Internet, merchant terminals and their associated funds transfer communications network that allows a transaction card holder to obtain cash or transfer value at numerous locations worldwide. The present invention provides a card that combines the magnetic stripe memory with one or a combination of the advanced technology memories and allows the memories to cooperatively interact. The cooperative interaction allows at least a portion of the capabilities of the advanced technology memories to be utilized through the magnetic stripe memory. In particular, the present invention provides a system and method for securely transferring value on a transaction card from an electronic purse within an advanced technology memory, such as the integrated circuit memory, to the magnetic stripe. Thus, the present invention provides a system and method for enabling the utilization of the advanced technology memory capabilities of the transaction card in the current network of devices that exclusively serve magnetic stripe memory cards.
The present invention discloses a method for performing a secure financial transaction utilizing the magnetic stripe memory of a transaction card, having a magnetic stripe memory and at least one advanced technology memory, comprising the steps of modifying data necessary to effect a funds transfer to form an special transaction number and storing the special transaction number on the magnetic stripe memory of the card. The special transaction number provides access to at least a portion of a value held within the at least one advanced technology memory on the card. The advanced technology memory comprises at least one of an integrated circuit memory, an optical stripe memory, and a thin film semi-conductor memory. The modifying step comprises generating the special transaction number preferably with the encryption capability of the at least one advanced technology memory on the card, but the special transaction number may be encrypted by a device, in communication with the card, capable of reading and writing to an advanced technology memory and a magnetic stripe memory. The reading and writing device comprises a device selected from the group consisting of a personal digital assistant, an automated teller machine, a customer access terminal, and a merchant terminal. Further, the modifying data step may comprise encrypting the data using a public key/private key encryption system and/or a synchronized clock encryption system.
Additionally, the storing step may comprise recording the Hal transaction number on the magnetic stripe memory in a discretionary data field, a non-discretionary data field, and/or a combination of both. When the storing step comprises recording the special transaction number in a non-discretionary data field, the special transaction number may be recorded in place of at least a portion of a personal account number. Further, the present invention may also comprise recording an indicator character on the magnetic stripe memory to indicate to the system reading the magnetic stripe that the special transaction number is not a typical account number. The indicator character may be recorded in a discretionary data field or in a non-discretionary data field.
Furthermore, the present invention discloses a system for transferring value on a multi-memory transaction card from an advanced technology memory to a magnetic stripe memory. The system comprises a transaction card having an advanced technology memory and a magnetic stripe memory. The advanced technology memory comprises an electronic purse having an electronic purse value. The magnetic stripe memory comprises non-discretionary data fields for recording a personal account number, and the magnetic stripe memory also has discretionary data fields. Further, the system provides a reader/writer device in communication with the advanced technology memory and the magnetic stripe memory. And finally, an encrypted special transaction number is recorded on the magnetic stripe memory, and the special transaction number effects the transfer of at least a portion of the electronic purse value.
The advanced technology memory comprises at least one of an integrated circuit memory, an optical memory and a thin film semi-conductor memory. The reader/writer device comprises at least one of a personal digital ant, an automated teller machine, a customer access terminal, and a merchant terminal. The special transaction number comprises a cash value, also referred to as a transaction value, and a personal identification number. Additionally, the special transaction number is encrypted by the advanced technology memory and/or by the reader/writer device. Further, the system may comprise an indicator character recorded on the magnetic stripe memory in the discretionary data field or in the non-discretionary data field.
In another embodiment, a system for using value stored in an advanced technology memory on a multi-memory transaction card utilizing a magnetic s memory on said card. The system comprises a transaction card having an advanced technology memory and a magnetic stripe memory. The advanced technology memory comprises an integrated circuit memory with an electronic purse having an electronic purse value. The magnetic stripe memory comprises non-discretionary data fields for recording a personal account number, and also comprises discretionary data fields. The system further comprises a special transaction number recorded on the magnetic stripe memory. The special transaction number represents at least a portion of the electronic purse value. Also, the system has a reader/writer device in communication with the advanced technology memory and the magnetic stripe memory. The reader/writer device generates the special transaction number. Finally, the system has a terminal device that dispenses credit for an amount equivalent to the portion of the electronic purse value represented by the special transaction number. The reader/writer device and the terminal device may be the same device.